Wisdom, 19, made his debut under Brendan Rodgers in a Europa League tie in September and has appeared 14 times for the club this season.
"It's a great honour to sign a new contract at the club and I'm very happy," he told the club's official website.
"It was an easy decision to make - as soon as they offered it to me, I grabbed the opportunity with both hands because it's a great club and I just want to continue to play for Liverpool.
"I am happy with the progress I've made so far and hopefully I can progress more in the second half of the season and continue to keep playing.
"There's still so much hard work ahead. There is big competition within the team and everyone wants to play football. I just hope I can keep progressing and continue in the way I have been."
Wisdom joins Raheem Sterling, Luis Suarez, Martin Skrtel, Daniel Agger, Suso and Jonjo Shelvey in signing new deals at Anfield this season.
Managing director Ian Ayre said: "Getting talent like him, Raheem and others to commit at this point is absolutely essential to the future.
"The manager, the owners and everyone have said the key is to build something for the long term - and young players are a catalyst to that. None more so than Andre.
"He's come on leaps and bounds in the last year or so and that's because of all the hard work he's put in and the manager giving him a chance, so it's absolutely essential players like that commit themselves to the club."